Nomura Bullish on Tata, JSW, Jindal Steel

Foreign brokerage firm Nomura has kept a ‘Buy’ rating on Tata Steel, Jindal Steel, and JSW Steel in its latest report on India’s steel sector. The firm said the industry is supported by improving domestic steel prices, even though global markets are facing challenges.

Globally, Nomura noted that China’s efforts to control excess steel production are starting to show results. Since April 2025, China’s monthly crude steel output has stayed at the lower end of the five-year average, compared to very high production levels seen in March 2025. The firm expects China to introduce more supportive policies, especially to boost the property sector.

In India, Nomura said the recent slowdown in steel consumption appears to be seasonal rather than a long-term problem. It expects demand to improve strongly in the financial years 2027 and 2028. This growth is likely to be driven by recovery in the automobile sector, expansion of infrastructure projects, growth in manufacturing, and steady demand from end users.

Nomura also increased its target price for JSW Steel to Rs 1,340 from Rs 1,300 earlier. It set a target of Rs 215 for Tata Steel and Rs 1,150 for Jindal Steel. The report added that these stocks are currently trading above their three-year average prices, with Jindal Steel showing the highest premium.

The brokerage further said that domestic hot-rolled coil (HRC) steel prices have risen after the government extended safeguard duties for three years. This move is aimed at reducing cheap imports and maintaining stable prices in the local market.

Overall, Nomura remains positive about the future of India’s steel sector and expects steady growth in the coming years.